Falcon Oil & Gas Ltd.: Full Year Results

FALCON OIL & GAS LTD.
("Falcon" or the "Company" or the "Group")

Full Year Results

28 April 2017 - Falcon Oil & Gas Ltd. (TSXV: FO, AIM: FOG, ESM: FAC) is pleased to announce its financial results for the year ended 31 December 2016.

The following should be read in conjunction with the complete audited Financial Statements and the accompanying Management's Discussion and Analysis ("MD&A") for the three and twelve months ended 31 December 2016.

Highlights:

Operational

• Successfully completed the drilling of the Beetaloo W-1 well to a total depth of 3,173 with very encouraging results.
• Hydraulic stimulation of the horizontal Amungee NW-1H well was completed.
• In February 2017, the Group announced that Origin Energy Resources ("Origin"), Falcon's 35% joint venture partner submitted the Results of Evaluation of the Discovery and Preliminary Estimate of Petroleum in Place for the Amungee NW-1H Velkerri B Shale Gas Pool to the Northern Territory Government indicating a material gas resource.
• Completion of the nine well exploration and appraisal programme will be delayed pending the outcome of the independent scientific inquiry on hydraulic fracturing.
• Processing of Falcon's exploration license application in South Africa's Karoo Basin continues to progress and the South African Department of Mineral Resources is expected to issue licences in 2017.

Financial

• Strong financial position, debt free with cash of US$10.1 million at 31 December 2016.
• Continued focus on strict cost management and efficient operation of the portfolio.
• General & administrative expenses decreased 18% year on year to US$2.0 million (31 December 2015: US$2.5 million).

Philip O'Quigley, CEO of Falcon Oil & Gas commented:

"2016 was a landmark year for our Company with the first extended production test in the Beetaloo basin and the announcement of a material gas resource. Our 2017 drilling program is delayed pending the outcome of the independent scientific inquiry on hydraulic fracturing, however we are hopeful of a favourable outcome and the resumption of drilling in the not too distant future. "

Filing of Financial statements, MD&A, AIF and Reserves data

Falcon has filed its audited financial statements for the year ended 31 December 2016, the accompanying MD&A for year ended 31 December 2016 dated 27 April 2017, its Annual Information Form ("AIF") dated 27 April 2017 and the Statement of Reserves Data and Other Oil and Gas Information (National Instrument 51-101, Forms 51-101F1, 51-101F2 and 51-101F3) with the relevant provincial securities regulators. These filings are available for review on the Canadian System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com. The audited financial statements, MD&A and AIF are also available on Falcon's website www.falconoilandgas.com.
 
 

Falcon Oil & Gas Ltd.
Consolidated Statement of Operations and Comprehensive Loss

		Year Ended 31 December 2016 $'000	Year Ended 31 December 2015 $'000
Revenue
Oil and natural gas revenue		6	7
		6	7
Expenses
Exploration and evaluation expenses		(336)	(679)
Production and operating expenses		(15)	(20)
Depreciation		(16)	(39)
General and administrative expenses		(2,037)	(2,491)
Share based compensation		(1,335)	(256)
Foreign exchange loss		(73)	(143)
		(3,812)	(3,628)
Other income		-	3,594
		(3,806)	3,594
Results from operating activities		(3,806)	(27)
Fair value gain - outstanding warrants		208	79
Finance income		53	78
Finance expense		(145)	(220)
Net finance expense		(92)	(142)
Loss before tax		(3,690)	(90)
Taxation		-	(110)
Loss and comprehensive loss for the year		(3,690)	(200)
Loss and comprehensive loss attributable to:
Equity holders of the company		(3,687)	(193)
Non-controlling interests		(3)	(7)
Loss and comprehensive loss for the year		(3,690)	(200)
Loss per share attributable to equity holders of the company:
Basic and diluted		($0.004)	($0.000)

Falcon Oil & Gas Ltd.
Consolidated Statement of Financial Position

		At 31 December 2016 $'000	At 31 December 2015 $'000
Assets
Non-current assets
Exploration and evaluation assets		39,618	39,618
Property, plant and equipment		7	64
Trade and other receivables		34	22
Restricted cash		2,151	2,239
		41,810	41,943
Current assets
Cash and cash on deposit		10,127	12,683
Trade and other receivables		190	268
		10,317	12,951
Total assets		52,127	54,894
Equity and liabilities
Equity attributable to owners of the parent
Share capital		382,853	382,853
Contributed surplus		44,251	42,916
Retained deficit		(386,229)	(382,542)
		40,875	43,227
Non-controlling interests		703	706
Total equity		41,578	43,933
Liabilities
Non-current liabilities
Decommissioning provision		9,690	9,565
		9,690	9,565
Current liabilities
Accounts payable and accrued expenses		632	961
Derivative financial liabilities		227	435
		859	1,396
Total liabilities		10,549	10,961
Total equity and liabilities		52,127	54,894

Falcon Oil & Gas Ltd.
Consolidated Statement of Cash flows

	Year Ended 31 December
	2016 $'000	2015 $'000
Cash flows from operating activities
Net loss for the year	(3,690)	(200)
Adjustments for:
Share based compensation	1,335	256
Depreciation	16	39
Fair value gain - outstanding warrants	208	(79)
Net finance expense	92	142
Termination of farm-out transaction - NIS	-	(3,700)
Other	101	143
Change in non-cash working capital
Trade and other receivables	66	257
Accounts payable and accrued expenses	(202)	124
Restructuring spend	-	(444)
Interest received	53	78
Net cash used in operating activities	(2,437)	(3,384)
Cash flows from investing activities
Decrease / (increase) in restricted cash	22	(1,991)
Exploration and evaluation assets	(110)	(110)
(Increase) / decrease in cash deposits - other receivables	(2,270)	4,000
Termination of farm-out transaction - NIS	-	3,700
Property, plant and equipment	(4)	-
Net cash (used in) / generated by investing activities	(2,362)	5,599
Change in cash and cash equivalents	(4,799)	2,215
Effect of exchange rates on cash & cash equivalents	(27)	(285)
Cash and cash equivalents at beginning of year	10,683	8,753
Cash and cash equivalents at end of year	5,857	10,683

CONTACT DETAILS:
Falcon Oil & Gas Ltd. Philip O'Quigley, CEO Anne Flynn, CFO		[phone] [phone] [phone]
Davy (NOMAD & Broker) John Frain / Anthony Farrell		[phone]

This announcement has been reviewed by Dr. Gábor Bada, Falcon Oil & Gas Ltd's Head of Technical Operations. Dr. Bada obtained his geology degree at the Eötvös L. University in Budapest, Hungary and his PhD at the Vrije Aniversiteit Amsterdam, the Netherlands. He is a member of AAPG and EAGE.

All dollar amounts in this document are in United States dollars "$", except as otherwise indicated.

About Falcon Oil & Gas Ltd.
Falcon Oil & Gas Ltd is an international oil & gas company engaged in the acquisition, exploration and development of conventional and unconventional oil and gas assets, with the current portfolio focused in Australia, South Africa and Hungary. Falcon Oil & Gas Ltd is incorporated in British Columbia, Canada and headquartered in Dublin, Ireland with a technical team based in Budapest, Hungary.

For further information on Falcon Oil & Gas Ltd. please visit www.falconoilandgas.com

About Origin Energy
Origin Energy (ASX: ORG) is the leading Australian integrated energy company with market leading positions in energy retailing (approximately 4.3 million customers), power generation (approximately 6,000 MW of capacity owned and contracted) and natural gas production (1,093 PJ of 2P reserves and annual production of 82 PJe). To match its leadership in the supply of green energy, Origin also aspires to be the number one renewables company in Australia.

Through Australia Pacific LNG, its incorporated joint venture with ConocoPhillips and Sinopec, Origin is developing Australia's biggest CSG to LNG project based on the country's largest 2P CSG reserves base.

www.originenergy.com.au

Glossary of terms
AIM	London Stock Exchange's international market for smaller growing companies
ASX	Australian Securities Exchange
CSG	Coal seam gas
LNG	Liquefied natural gas
MW	Megawatt
TCF	Trillion cubic feet

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information in this press release may constitute forward-looking information. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict.  Such information may include, but is not limited to comments made with respect to the awarding of an exploration license in South Africa, to the type, number, schedule, testing and objectives of the wells to be drilled in the Beetaloo basin Australia, expected contributions of the partners, the prospectivity of the Middle Velkerri shale play and the prospect of the exploration programme being brought to commerciality. Actual results might differ materially from results suggested in any forward-looking statements. Falcon assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Falcon. Additional information identifying risks and uncertainties is contained in Falcon's filings with the Canadian securities regulators, which filings are available at www.sedar.com.

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Source: Falcon Oil & Gas Ltd. via Globenewswire